What capital gains laws are there on rental properties?
April 28, 2003
Date: Thu, 13 Mar 2003
What are the current laws regarding capital gains on the sale of rental properties (single family house)?
Date: 04 Apr 2003
This is not a short answer question. See Form 4797, Schedule D and the related instructions. It depends on when the property was acquired. There may be ordinary income for depreciation recapture in some cases. In others, the gain up to the amount of accumulated depreciation is taxable at a 25% maximum tax rate. I recommend that you consult with a tax advisor for more details.
We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.
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